Tuesday 5 May 2009

It's a long way to Tipperary...

How do I love this song written in 1912.

But a long way it is.


I have a friend who’s a bond dealer at D.
I spoke him this morning and he confirmed what is becoming clear the last couple of days in the market: the demand for good credits is booming.
It seems that credit markets are on their way back.
This theme is also reflected in the Credit Derivatives Swap markets where spreads are tightening. No, not all is lost. But it will take a long time.


Having said this, friends, I as you attention as the bull movement is overbought with the minute now.

All technical indicators are screaming now that the equity markets are overbought. Look to this indicator showing how many stocks of the S&P500 are humming above their 50-day moving average... Spooky

So, be careful out there


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